The Indian real estate market is booming, but with great opportunity comes great risk. From fake listings to illegal land sales and forged documents, property frauds in India are unfortunately not uncommon. Every year, thousands of homebuyers and investors lose their hard-earned money due to real estate scams that could have been avoided with simple precautions.
Whether you're buying your first flat, investing in a plot, or planning a luxury apartment, understanding how to avoid property frauds is essential. In this blog, we’ll walk you through the most common real estate frauds in India—and how you can protect yourself with smart, legal, and practical safety tips.
Common Real Estate Frauds in India:
Before we jump to prevention, let’s understand the major types of frauds:
Fake Property Listings: Scamsters post fake ads online and vanish after taking booking amounts.
Illegal Land Sales: Selling land without clear title or without the owner’s consent.
Multiple Sales of the Same Property: One property is sold to multiple buyers using forged documents.
Delayed or Never-Completed Projects: Developers collect money and delay possession endlessly.
Builder-Broker Nexus: Brokers push illegal or unapproved projects for commissions.
Forged Ownership Documents: Use of fake property papers to cheat buyers.
Encroachments or Disputes: Selling land under legal dispute or government litigation.
Top 10 Safety Tips to Avoid Property Frauds in India:
1. Verify the Property Title
Always check:
Who owns the property?
Is the title deed genuine and updated?
Is it free of disputes, mortgages, or legal claims?
Tip: Hire a legal advisor to conduct a Title Search Report from the sub-registrar’s office.
2. Check RERA Registration
For new residential or commercial projects, always ask for the RERA registration number.
Visit your state’s official RERA website to verify:
Builder credentials
Approved floor plans
Possession date
Litigation status
Example: https://www.up-rera.in
3. Demand Original Property Documents
Don’t settle for photocopies. Ask for:
Sale deed
Encumbrance certificate (EC)
Tax receipts
Occupancy certificate (OC) or Completion certificate (CC)
Approved building plan
Caution: Refusal to show originals is a red flag.
4. Visit the Property Site Personally:
Never rely solely on photos or videos. Make a physical visit to:
Check construction quality
Match the layout with legal approvals
Interact with local residents
5. Buy from Reputed Builders:
Choose developers with:
Completed RERA-registered projects
Verified track records
Positive reviews and delivery history
Don’t get lured by unbelievable discounts or pre-launch offers without legal backing.
6. Avoid Cash Transactions:
Insist on:
Full payment via bank transfer
PAN card details in agreement
Legal registration of sale agreement
This helps in transparency and future legal claims.
7. Cross-Verify Broker and Agent Credentials:
Work only with certified real estate agents registered under RERA. Avoid middlemen without proper documentation or online identity.
8. Check for Government Approvals:
For apartments and plots, ensure approvals from:
Municipal authorities
Development authority
Fire and environment departments
Projects without approvals can be demolished or face legal stays.
9. Know the Property’s Legal Status:
Especially for plots and land, check if:
It’s classified as agricultural or residential
There’s any litigation pending
It’s part of any government acquisition
Ask for a Non-Encumbrance Certificate and RTC extract in case of land.
10. Get Everything in Writing:
Verbal promises from builders or brokers hold no legal value. Ensure:
Every clause is documented
Possession timelines are clearly mentioned
Penalty clauses for delay are included
Use Legal Experts:
Hiring a real estate lawyer might cost a bit extra, but it’s nothing compared to losing lakhs in fraud. Let a legal expert:
Review agreements
Conduct due diligence
Guide you through the registration process
Conclusions:
The real estate market in India is growing fast, and opportunities are plenty—but so are fraudsters. As a buyer or investor, your first weapon is awareness. Take your time, verify every detail, and never fall for pressure tactics or flashy discounts.
Buying property is a lifetime investment—don’t let a shortcut turn it into a lifetime regret.
